Property Report Asia
Home purchases have fallen by as much as 50 percent in Cambodia in the past year, the Phnom Penh Post has reported.
With a thriving market until recently, Cambodia has now begin to experience the effects of the global economic situation as well as the problematic mortgage market in the US.
Sorm Molika, marketing manager at the New World Group, told the Phnom Penh Post apartment and villa sales had dropped 50 percent in the past year. She said the trend began in July when the government announced new investment guidelines for developers.
In July, the government issued an order stating that developers must deposit at least two percent of their investment in the national bank as well as obtain additional licensing.
"My company has seven housing complexes in Phnom Penh. We´ve sold only 100 units, down from 300 last year," Molika told the paper.
But while sales are down, prices have soared.
A two-storey apartment in Phnom Penh that cost on average US$66,800 last year, was selling for $120,000 in July and $170,000 at present, Molika said.
With a thriving market until recently, Cambodia has now begin to experience the effects of the global economic situation as well as the problematic mortgage market in the US.
Sorm Molika, marketing manager at the New World Group, told the Phnom Penh Post apartment and villa sales had dropped 50 percent in the past year. She said the trend began in July when the government announced new investment guidelines for developers.
In July, the government issued an order stating that developers must deposit at least two percent of their investment in the national bank as well as obtain additional licensing.
"My company has seven housing complexes in Phnom Penh. We´ve sold only 100 units, down from 300 last year," Molika told the paper.
But while sales are down, prices have soared.
A two-storey apartment in Phnom Penh that cost on average US$66,800 last year, was selling for $120,000 in July and $170,000 at present, Molika said.
8 comments:
This is not because of spat between Khmer and Siem, It's about the political tactics from CPP, the game never end.
I am looking to buy a medium house for months but I can not afford for such high price. I hope the house price will down
3:54 PM
Wait at least another six months, given the imperfections of the global economy, you'll get a good bargain.
I hope it keep going down the house price and in late December I can buy a house
4:14 PM
If you have the money, my recommendation is: not now or not in December. Remember that the global financial markets have already dried up, and soon people will scrable to sell their assets, when the opportunity presents you.
Economic is like the securities or stock exchange it can be down and up within minutes. So we need to decide with point to buy or sell. So far, US government, EU reserve bank, UK central bank also promiss to interfere in the situation. I think the economic will recover soon and not in downward trent
Irrespective of what the economic pundits or government agents are saying about the recession; however, the fact is that we're already in recession, and we're lucky that we're not in depression.
Let's ride out the volatility, and wait until all the money dried up, then you buy. No now!
No surprise! with high tension in the region, there won't be any new growth, there won't be any new business, there won't be any new job. Who would want to stay in a place like that? The best thing to to is to sell (even at a lost) and move some place else.
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